Group 1's (GPI) Earnings & Sales Beat Streak Continues in Q1
Group 1 Automotive GPI reported first-quarter 2023 adjusted earnings per share of $10.93, which beat the Zacks Consensus Estimate of $9.70. The outperformance can be attributed to higher-than-anticipated revenues from all but the Financial/Insurance segment. The bottom line increased from the prior-year quarter’s $10.81 per share.
The automotive retailer registered net sales of $4,130 million, beating the Zacks Consensus Estimate of $3,921 million. Also, the top line rose 7.4% from the year-ago quarter’s $3,844.4 million.
GPI has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Group 1 Automotive, Inc. Price, Consensus and EPS Surprise
Group 1 Automotive, Inc. price-consensus-eps-surprise-chart | Group 1 Automotive, Inc. Quote
Quarter Highlights
New-vehicle retail sales increased 12.1% from the prior-year quarter to $1,955.7 million and beat the Zacks Consensus Estimate of $1,808 million. The gross profit from the unit totaled $186.7 million, decreasing 7.2% year over year but surpassing the consensus mark of $169 million.
Used-vehicle retail sales inched down 0.8% from the year-ago period to $1,348.9 million but outpaced the consensus mark of $1,250 million. The gross profit from the unit was $76.7 million, shrinking 12.6% year over year but topping the consensus estimate of $55 million.
Used-vehicle wholesale sales surged 19.8% year over year to $112 million and came ahead of the consensus mark of $90 million. The unit recorded a gross profit of $2 million, down 28.8% year over year.
In the Parts and Service business, the top line rose 16% from the year-ago quarter to $548.3 million and topped the Zacks Consensus Estimate of $509 million. The gross profit for the segment was $297.3 million, climbing 14.4% year over year and outpacing the consensus mark of $274 million.
Revenues from the Finance and Insurance business tailed off 4.6% from the prior-year period’s levels to $165.1 million, missing the consensus mark of $168 million.
Segments in Detail
In the reported quarter, revenues in the U.S. business segment climbed 8.1% year over year to $3,342.2 million. The segment’s gross profit slid 0.5% to $617.6 million. During the reported quarter, retail new-vehicle, retail used-vehicle and wholesale used-vehicle units sold were 30,883, 34,440 and 7,480, respectively.
In the reported period, revenues climbed 4.6% year over year to $787.7 million for the U.K. business segment. The gross profit was $110.4 million, up 6.3% from the year-ago quarter. During the reported quarter, the retail new-vehicle, retail used-vehicle, and wholesale used-vehicle units sold were 8,766, 10,997 and 2,894, respectively.
Financial Position
Selling, general and administrative expenses were up 10.6% year over year to $462.8 million. Group 1 Automotive had cash and cash equivalents of $21.3 million as of Mar 31, 2023, down from $47.9 million as of 2022-end. Total debt was $1,988.5 million as of Mar 31, 2023, down from $2,082.5 million recorded on Dec 31, 2022.
During the quarter under discussion, GPI repurchased 180,982 shares at an average price of $191.85 per common share for a total of $34.7 million. As of Mar 31, 2023, the company had 14.1 million common shares outstanding.It currently has $128.5 million remaining on its authorized stock buyback program.
Key Releases From the Auto Space
Tesla TSLA reported first-quarter 2023 earnings of 85 cents per share, down from the year-ago figure of $1.07 but outpaced the Zacks Consensus Estimate of 83 cents. This marked an earnings beat for the electric vehicle behemoth for the ninth time in a row. Higher-than-expected revenues from its Energy Generation/Storage and Services/Other segments resulted in this outperformance.
Total revenues came in at $23,329 million, witnessing year-over-year growth of 24%. However, the top line missed the consensus mark of $23,472 million. Tesla reported an overall gross margin of 19.3% for the reported quarter. The operating margin came in at 11.4%. Management stuck to its target of around 50% growth in deliveries in the foreseeable future. For 2023, it expects deliveries to reach 1.8 million units.
General Motors GM reported first-quarter 2023 adjusted earnings of $2.21 per share, surpassing the Zacks Consensus Estimate of $1.64. Higher-than-expected operating profits from GMNA, GMI and Financial segments led to the outperformance. The bottom line also rose from the year-ago quarter’s earnings of $2.09 per share.
Revenues of $39,985 million beat the Zacks Consensus Estimate of $38,677.9 million and increased from $35,979 million recorded in the year-ago period. However, the company recorded adjusted EBIT of $3,803 million, lower than $4,044 million in the prior-year quarter. The automaker’s share in the GM market was 8.6% in the reported quarter, down from the year-ago quarter’s 9%.
PACCAR’s PCAR earnings of $2.25 per share for first-quarter 2023 beat the Zacks Consensus Estimate of $1.82 and rocketed 95.6% from the year-ago figure. Higher-than-expected pretax income from Trucks, Parts and Financial Services segments resulted in the outperformance. Consolidated revenues (including trucks and financial services) came in at $8,473.3 billion, up from $6,472.6 million recorded in the corresponding quarter of 2022.
PACCAR’s cash and marketable debt securities amounted to $5,922.2 million as of Mar 31, 2023, compared with $6,158.9 million on Dec 31, 2022. The company paid cash dividends of 25 cents per share during the reported quarter. Capex and R&D expenses for 2023 are envisioned in the band of $600-$650 million and $380-$420 million, respectively.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PACCAR Inc. (PCAR) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
Group 1 Automotive, Inc. (GPI) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
